2009 NH&RA Annual Meeting Measuring Community Benefit of NMTC Transactions Joe Wesolowski March 11, 2009
Transaction Selection Process � NMTC Screening Application � Discussion with Enterprise “Impact Market” leader � Project Ranking Worksheet � “Demonstration Project” � Internal Pipeline Review � Community Impact Assessment Completed 2
Transaction Selection � Is it a Qualified Low Income Community Business? � Does it meet the requirements of applicable Allocation Agreements? � Does it meet the investment guidelines for investors? � Financially Viable Structure � Strength of the Development Team � Importance to the city � “But for” test 3
Transaction Selection � Deal “Readiness” � Consistency with Network Advisory Board Feedback � Timing of closing relative to CDFI Performance rules � Size of the transaction vs. Cost to close � Geographic Concentration � COMMUNITY IMPACT 4
Impacts Individual Community � � Jobs Reduced Crime � � Living Wages Increased Revenue for State and Local Governments � Employee Benefits � Increase in Social Programs � Wealth Creation � Alleviation of Poverty � Home Ownership � Closing the Affordability Gap � Training Programs � Women and Minority Ownership � Access to Goods and Services � Decrease number of individuals on Public Assistance � “Catalytic” Impacts 5
Impacts Environmental � Green Building (LEED) � Brownfields Cleanup � Saving Greenfields � Reduced CO2 Emissions � Individual Health Benefits (Water & Air Quality) � Renewable Energy 6
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Rosa Parks School � Project was Key Element in Community Revitalization � Attached Boys and Girls Club � Jobs � Small Amount of City Revenue � Walking Distance to School � Community Use of Library and Computers � LEED Silver Rating � 2007 Richard Riley Award 8
Portland Portland North North New Columbia -- Before Before New Columbia -- 9
New Columbia today New Columbia today New Columbia today New Columbia today 10
Columbus Housing Partnership - Columbus, OH Project type: For-Sale Housing � TDC $90,000,000 � QEI $9,500,000 � Phased Construction/Rehab ~ 700 affordable single family homes over 7 yrs � Affordable to families earning less than 80% AMI � QEI recycles > 9 times � Catalytic project; leverages city’s Home Again Program � 100 construction jobs � Sponsored by Columbus Housing Partnership 11
East Baltimore Development, Inc. � Project is immediately adjacent to East Baltimore campus of Johns Hopkins: � Nation’s top-ranked hospital � Highly-regarded schools of medicine, public health, and nursing � Country’s largest recipient of NIH research funding � City and State’s largest private employer � Over 4,300 graduate students, post-docs, and research fellows 12
East Baltimore in 2002 � Massive disinvestment and property abandonment in community marked by an over 70% vacancy rate � Less than $4.0 million market valuation for 31-acres of real estate located in Phase I of project area � Crime rates, poverty levels, and lead poisoning rates significantly above the city and regional averages � Household income levels and educational attainment rates significantly below the city and regional averages � Long and complex “town/gown” relationship between the community and Johns Hopkins 13
Scope of Development Activities � Over 2,200 new residential housing units targeted to a mix of incomes and households � Nearly 2 million square feet of new life science and other workplace space � Upwards of 8,000 new employment opportunities � Neighborhood retail stores and services � Community school campus � Intermodal transit station at Gay near Broadway � New parks integrated into neighborhood in support of schools, recreational trails and other amenities. 14
Programmatic Activities Community Development: Economic Development: � � Master Planning Workforce Development � � “Clean and Safe” Activities Economic Inclusion � � Transit-Oriented Development Business Incubation Human Development: Real Estate Development: � Property Acquisition � Household Relocation � Demolition � Family Services � Infrastructure � Educational Initiatives � Construction � Family Resources Center � Project Management � Shared Equity Housing Fund 15
Demonstrating Results: Defining, Measuring and Reporting Post ‐ Development Community Impact Virchow, Krause & Co., LLP + The Valued Advisor Fund
HOW IT WORKS POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT • Understand why and how the CDE invested in the project, in the LIC • Community context • CDE expectations and criteria for investment • CDE community impact requirements • Define what is to be measured • Project size, scope and land use • Access to capital • Serving LIC residents and Businesses • Economic Impact to the LIC • Develop a method to measure • Area of impact and area of comparison • CDE/community assumptions • Required data • Constraints • Benchmarks • Report results • Audience • Format • Updates
INDICATORS OF IMPACT POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT Depending upon size, scope and land use of the completed project, CDEs require evaluations of impact typically within three categories: Access to Capital
INDICATORS OF IMPACT POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT Depending upon size, scope and land use of the completed project, CDEs evaluate impact in three categories: Access to Capital Serving LIC Residents and Businesses
INDICATORS OF IMPACT POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT Depending upon size, scope and land use of the completed project, CDEs evaluate impact in three categories: Access to Capital Serving LIC Economic Residents Impact and Businesses To the LIC
CASE STUDY: SECOND LINE STUDIOS POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT Second Line Stages Studios, New Orleans, LA •The Valued Advisor Fund and other investors and partners provided an $8 million dollar NMTC allocation in December 2008. •This was an example of the leveraging of public and private resources for economic development in a highly distressed LIC • The QALICB produces short and full length feature films and television productions • This project is unique in that it involves the restoration of the historic Toye Cab Company building into a LEED certified structure and provides the first fully “Green” film studio in the United States utilizing full recycling of production materials and materials utilized on sets and in the various areas of the site. • Second Line has also linked with the Kingsley house to provide apprenticeships to local youth in the film industry helping to inspire hope and bring new opportunity into this LIC corridor.
HOW IT WORKS : SECOND LINE STAGES POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT • Understand why and how the CDE invested in the project, in the LIC • Define what is to be measured Access to Capital Serving LIC Economic Residents Impact and Businesses To the LIC
HOW IT WORKS : SECOND LINE STAGES POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT • Develop a method to measure •Area of impact •Comparison neighborhood or comparison over time •Constraints •Benchmarks Access to Capital: Leveraging Other Public and Private Investment Serving LIC Residents and Businesses: Creating Environmentally Sustainable Outcomes Economic Impact to the LIC: Commitment to Training and Hiring LIC Residents
REPORTING RESULTS POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT • Report results •What factors created impact? •Who was served? •How do we know? •Was the project successful? What is success? Measuring post-project impact Constraints must be addressed: is important: •Causality •Stakeholders need to know •Timing •Funders need to know •Data •CDEs need to know •Benchmarks •Informs future development plans
POST ‐ DEVELOPMENT COMMUNITY IMPACT ASSESSMENT • Thank you for your continued interest in supporting our nation’s low- income communities. •For additional information or discussion please feel free to contact me at: •Terri Preston-Koenig The Valued Advisor Fund (312) 307-9550 tpreston-koenig@valuedadvisorfund.com
Metrics in Community Metrics in Community I mpact Analysis I mpact Analysis NH&RA’s 2009 Winter NMTC Symposium March 11, 2009 Measuring the Community Benefit of NMTC Transactions James Riggs RealProperty RealPropertyResearch ResearchGroup Group Washington / Baltimore • • Atlanta Atlanta Washington / Baltimore
Telling the Story… … Telling the Story � Over $12.6 billion QEI s made into CDEs � Nearly $9 billion QLI CI s made through FY 2007 � $5.9 billion invested in LIC Real Estate Projects • over 46 million square feet constructed or rehabilitated • 210,000 construction jobs � $3.0 billion invested in LIC operating businesses • over 45,000 full time equivalent jobs created or retained Source: http://www.cdfifund.gov/docs/nmtc/2009/2009%20NMTC%20Workshop%20Materials.ppt RealPropertyResearchGroup
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